Saudi Arabia: Tax, Salary & Cost of Living Guide

Verifindex Score

3.65 / 5 - A-

Ranked #16 of 21

Effective tax rate at the $100,000 USD benchmark: 0.0%

Key stats

Median annual salary

SAR 192,000 (US$51,200 USD)

Cost of living index (US = 100)

46.8

Safety

91.44730029757544/100

Healthcare

83/100

Climate: average annual temperature

25.9°C / 78.6°F annual average (1991–2020). Informational, not weighted in Verifindex Score

Happiness

66/100. Informational, not weighted in Verifindex Score

Freedom

25.9943548/100

Tax snapshot (employed, No income tax)

About Saudi Arabia for expats

Saudi Arabia has no personal income tax for individuals. Expat employees receive their full salary with no income tax deductions. There is no capital gains tax on personal investments. VAT at 15% (increased from 5% in 2020) applies to most goods and services, which is the highest rate in the Gulf.

Saudi nationals contribute to the General Organisation for Social Insurance (GOSI) at 9.75% under the old system or 9.5 to 10% under the new system (post-July 2024). Expat employees are exempt from GOSI contributions. The only employer-side cost for expats is a 2% occupational hazard contribution.

Saudi Arabia is undergoing rapid transformation under Vision 2030, which aims to diversify the economy away from oil dependence. Major projects include NEOM, the Red Sea tourism development, and Diriyah Gate. This has created significant demand for expat professionals across construction, engineering, finance, technology, entertainment, and tourism. Riyadh is positioning itself as a regional business hub, with the Regional Headquarters Programme requiring multinational companies to establish their Middle East headquarters in the kingdom to retain government contracts.

The cost of living varies by city. Riyadh and Jeddah are the main centres, with Riyadh generally more expensive for housing. Costs are broadly similar to mid-range Gulf cities, lower than Dubai but higher than Oman or Bahrain. The Saudi riyal (SAR) is pegged to the US dollar at a fixed rate of 3.75.

Salary & income

The median expat professional salary in Saudi Arabia is approximately SAR 192,000 per year (around SAR 16,000 per month). This reflects mid-level professional roles. Senior positions in oil and gas (particularly with Saudi Aramco), finance, and construction can exceed SAR 400,000. Vision 2030 has created new demand in entertainment, tourism, and technology, though these sectors are still maturing.

Employment packages in Saudi Arabia traditionally include housing (or a housing allowance), annual flights, and sometimes education assistance. The structure of the package matters, as end-of-service benefits are calculated based on basic salary only. Some employers have moved toward all-inclusive salary structures, which simplifies comparison but can reduce the gratuity calculation.

Saudisation (Nitaqat) policies require employers to maintain minimum quotas of Saudi nationals, which affects hiring patterns and can limit the availability of certain roles for expats. This varies by sector and company size.

Key things to know

Healthcare in Saudi Arabia includes both public and private systems. Public healthcare through the Ministry of Health is available to Saudi citizens. Expats are required to have private health insurance, which employers must provide under the Council of Cooperative Health Insurance (CCHI) regulations. Major hospitals in Riyadh, Jeddah, and the Eastern Province are well-equipped. Specialist care is generally good in larger cities but more limited in smaller towns.

Work visas require employer sponsorship through the Ministry of Human Resources and Social Development. Saudi Arabia has reformed its labour mobility rules, and employees can now transfer sponsorship to a new employer under certain conditions. The Premium Residency programme (similar to a green card) is available for investors and highly skilled professionals. Always verify current requirements on the official Absher or HRSD portal.

Saudi Arabia's climate is hot and arid across most of the country. Summer temperatures in Riyadh regularly exceed 45°C, with the Eastern Province and Red Sea coast adding high humidity. Winters (November to February) are mild in most regions (15 to 25°C), with Riyadh occasionally experiencing cool nights near 5°C. The western highlands around Abha are cooler year-round. Sandstorms occur periodically, particularly in spring.

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